Binance Holdings Limited, one of the leading cryptocurrency trading platforms, has announced that it would no longer offer the Chinese currency Yuan, on its peer-to-peer network, where clients may trade it for cryptocurrencies such as bitcoin and ether. The trading marketplace will also conduct an assessment of its users to confirm that none of them are within mainland China. Chinese users’ accounts will be converted to ‘withdrawal only’ so that they can liquidate their positions. Such users will receive an email notification seven days prior to their account closure.
After departing the mainland China marketplace in 2017, Binance created a peer-to-peer platform in 2019 that allows users to trade Bitcoin, Ether, and Tether against Yuan. In the same year, it made its debut substantial investment in China, participating in a $200 million fundraising round for crypto-data portal Mars Finance. China’s premier financial and technology authorities proclaimed all crypto-related transactions unlawful on September 24, kicking off a new abolishment of the cryptocurrency in the country. Binance has joined a torrent of other crypto enterprises in publicizing plans to delist China entirely after regulators banned all crypto services and transactions in the month of September.
For several years, China’s reluctant attitude toward cryptocurrency has been well chronicled. Since 2013, the authorities have issued warnings and threatened to outlaw cryptocurrencies in one form or another on a number of occasions. China barred cryptocurrency exchanges from functioning inside its boundaries in 2017 and has since ordered financial companies to take a stronger proactive role in filtering out trades and driving crypto mining activities away from the nation. Users in the country, however, managed to use OTC or P2P transactions to trade bitcoin and other digital currencies. Digital private networks allowed many Chinese users to approach overseas exchanges. Beijing’s most recent prohibition on cryptocurrency services and transactions provided by foreign exchanges aimed to address these vulnerabilities.
Huobi, a Chinese cryptocurrency exchange, has also revealed that it will discontinue accepting novel mainland customers and deactivate existing accounts by the end of this year. Matrix port and Mac, two major Asia-focused crypto exchanges, have followed suit by suspending present customers.
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